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NEW YORK (TheStreet) -- Nomura Holdings (NMR) - Get Report has been upgraded by TheStreet Ratings from Sell to Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate NOMURA HOLDINGS INC (NMR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Capital Markets industry average. The net income increased by 18.6% when compared to the same quarter one year prior, going from $393.98 million to $467.16 million.
- NMR, with its decline in revenue, underperformed when compared the industry average of 5.0%. Since the same quarter one year prior, revenues fell by 14.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Capital Markets industry and the overall market, NOMURA HOLDINGS INC's return on equity is below that of both the industry average and the S&P 500.
- The gross profit margin for NOMURA HOLDINGS INC is currently lower than what is desirable, coming in at 33.73%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 12.41% trails that of the industry average.
- You can view the full analysis from the report here: NMR Ratings Report